Overview of JBS and its Significance
JBS, the world’s largest meat supplier based in Brazil, has received approval from the United States Securities and Exchange Commission (SEC) to list its shares on the New York Stock Exchange.
Impact on JBS’s Stock Performance
The news propelled JBS’s stock to a historical high. The value of the shares surged nearly 7% to 47.54 Brazilian real during the early hours of trading, marking the largest intraday gain in over a month.
Year-to-date, the stock has advanced more than 30%. However, JBS argues that its market capitalization is constrained compared to similar companies like Tyson Foods and Hormel Foods due to its non-US listing. The company previously stated that listing on the New York Stock Exchange could nearly double its market value to approximately $30 billion.
JBS’s Perspective on the Listing
According to JBS CEO Gilberto Tomazoni, as reported by Bloomberg, “We believe this operation will increase our international visibility, attract new investors, and further strengthen our position as a global leader in food.”
Next Steps for JBS
Shareholders will now vote on the listing at an extraordinary general meeting on May 23. Following this, JBS plans to start offering shares in early June.
Key Questions and Answers
- What is JBS and why is this news significant? JBS is the world’s largest meat supplier, headquartered in Brazil. The approval to list on the New York Stock Exchange is significant as it could potentially double their market value and increase their international visibility.
- How did JBS’s stock perform following the news? JBS’s stock surged nearly 7% to a historical high of 47.54 Brazilian real in early trading, marking the largest intraday gain in over a month.
- Why does JBS want to list on the New York Stock Exchange? Listing on the NYSE could attract new investors, increase JBS’s international visibility, and strengthen its position as a global leader in the food industry. Moreover, it could potentially double their market capitalization to around $30 billion.
- What are the next steps for JBS after receiving SEC approval? Shareholders will vote on the listing at an extraordinary general meeting on May 23. If approved, JBS plans to start offering shares in early June.
